News & Commentary:

July 2001 Archives

Articles/Commentary

Bretton Woods UpdateBretton Woods Project Jun/Jul 2001
From Seattle to Quebec City, antiglobalization protesters have complained that international institutions are illegitimate because they are undemocratic. To fight this perception, global organizations need to increase transparency, improve accountability, and think harder about norms for global governance.

Singapore edges out HKSCMP Jul 2, 2001
Hong Kong has come a narrow second to Singapore in a survey of the cost and ease of doing business in Asia.

There's no such thing as the New EconomyTimes of India Jul 2, 2001
"There's nothing called the New Economy. The whole debate of New Economy versus Old Economy is pure semantics," says Sumantra Ghoshal, the management guru and founding dean of the Indian School of Business (ISB) in Hyderabad.

Becoming global by stealth?Economist Jul 3, 2001
On July 5th, the European Central Bank will again review its interest-rate policy. The meeting will take place at a time of renewed euro volatility. Yet the currency's persistent weakness since its creation in January 1999 has not stopped it from having a global impact.

A turning point for trade?Economist Jul 3, 2001
July could be a critical month for the future of global trade. As the process for admitting China to the World Trade Organisation seems to be nearing a conclusion, efforts to launch a new round of world trade negotiations later this year are gathering pace.

Business Outlook Darkens in JapanIHT Jul 3, 2001
Business confidence in Japan sank in the second quarter to its lowest level in more than a year, according to a survey released Monday, the latest sign that the world's second-biggest economy was tipping into recession.

Online auctions hammeredFoley, K. (Nua) Jul 3, 2001
There are people who just love car boot sales, however, and for them the Internet is like car boot sale nirvana. There are legions of online auction sites, each promising better bargains than the last, all trying to emulate the great and glorious eBay.

The Right Way to GoldPiraino, S. (Mises Daily) Jul 3, 2001
The advantages of a gold standard are familiar to supporters of the free market. Gold possesses all of the attributes of an ideal medium of exchange. It is durable, portable, malleable, valuable, and fungible, which is why the market chose it as the dominant money before the age of paper money.

The Evil EmpireWanniski, J. (Polyconomics) Jul 4, 2001
Your Tuesday column, "Whither the IMF?" asks some of the right questions and comes to some of the right conclusions, George, but I am afraid you still do not see that the evils perpetrated by the IMF are the result of a greenback world.

Timetable rules out WTO this yearSCMP Jul 4, 2001
China will not join the World Trade Organisation before next year, according to a timetable announced by the China working party yesterday.

Officials square-off for tough talksSCMP Jul 4, 2001
Negotiators have finally begun talks over a rankling trade dispute between Japan and China after weeks of increasingly tough rhetoric between the Asian trading giants.

Baghdad Flexes Its Oil-Money MuscleIHT Jul 4, 2001
For more than four years, France has been the world's largest beneficiary of trade with Iraq through a United Nations-sponsored humanitarian aid program, signing sales deals for more than $3 billion on Peugeot minibuses, Renault garbage trucks, Alcatel communications equipment and other products.

China caught in WTO insurance crossfireAsia Times Jul 4, 2001
The end of China's 15-year saga to join the World Trade Organization is closer following further agreement in Geneva this week over Beijing's multilateral commitments. However, the hard bargain the United States is driving over insurance companies operating in China has ruffled European Union feathers.

Forest for the treesAsia Times Jul 4, 2001
Violent protests against reforms proposed by international monetary agencies highlight the divisions that exist in Papua New Guinea, a nation with a deep forest culture that places preeminence on universal land use. While the country certainly needs direction for sustainable economic development, there is a strong case for allowing the region to develop at its own speed, rather than at a pace based on Western paradigms.

No entryEconomist Jul 4, 2001
A 12-year-long effort to ease cross-border corporate takeovers and mergers in the European Union has been rejected by the European Parliament. This is a bitter blow for liberalisers, who saw it as the key to sharpening competition.

Let's See Who Blinks First, Turkey Or the IMFDeRosa, D. (Bloomberg) Jul 4, 2001
Turkey has brought upon itself the ire of the International Monetary Fund with its foot-dragging on promised economic reforms. Yesterday, the IMF announced it was delaying a $1.5 billion loan because of Turkey's noncompliance with conditions attached to its latest round of financial assistance.

Australian Dollar May Rise by Sept.: Bloomberg SurveyBloomberg Jul 5, 2001
The Australian dollar is expected to rise against the U.S. dollar, gaining to an average of 52.4 U.S. cents by the end of September and to 55.1 U.S. cents by year-end, according to the average forecast of 17 analysts surveyed by Bloomberg News. The Australian dollar traded at 51.9 U.S. cents in local trading recently.

EU Parliament Rejects Bill to Ease TakeoversIHT Jul 5, 2001
European lawmakers on Wednesday effectively killed a groundbreaking measure that would have made it easier to mount corporate takeovers, a blow to efforts to instill a more free-wheeling business culture in Europe.

Rules for Global Business Are BlurryIHT Jul 5, 2001
The conflicting American and European rulings on General Electric Co.'s proposed acquisition of Honeywell International Inc. have exposed one of the dirty little secrets about the global economy: In many areas, there still are no global rules to govern the behavior of global companies.

China-Japan Talks Fail to End Trade DisputeIHT Jul 5, 2001
After two days of talks here, Chinese and Japanese trade officials failed to agree Wednesday on how to end a dispute over tariffs that threatens commerce between the two largest economies in Asia.

Running out of SteamEconomist Jul 5, 2001
As the European Central Bank yet again decided against a cut in European interest rates on July 5th, there was a small crumb of comfort for the German government: news of an unexpected rise in manufacturing orders in May. But unemployment remained stubbornly high, and the outlook for the German economy shaky, compared with only a few months ago. What has gone wrong for Europe's growth engine?

China gambles on trumping cold warriorsAsia Times Jul 5, 2001
The Chinese leadership is taking one of the biggest gambles in China's modern history over the World Trade Organization and the Olympic Games issues: it is giving the country a timetable for both economic and political reforms. If the gamble succeeds, the anti-China containment policies of US cold warriors will become untenable. Hard-nosed realists in the US administration, hopefully, are coming to realize this, and to see the need for a broader, more complex US strategy.

Bank Keeps Key Rate Unchanged in EuropeIHT Jul 6, 2001
The European Central Bank signaled Thursday that it would not lower interest rates "for some time to come," sending the euro tumbling and raising the likelihood of a backlash among European political leaders.

Piercing China's Internet WallIHT Jul 6, 2001
Tapping away at one of his computers in a cramped two-room apartment in western Beijing, Lloyd Zhao is engaged in an extraordinarily dangerous endeavor -- searching through the night for holes in the electronic wall that the government has built to keep Chinese from seeing Web sites of Falun Gong, the outlawed spiritual movement.

Groping for Global Ethical GuidelinesIHT Jul 6, 2001
Four centuries ago, Dutch companies hired religious advisers to judge the morality of their ventures around the world - so powerful were the twin Calvinist commitments to the Bible and the purse. Today's multinational corporations are usually chastised for over-attachment to the purse. But the Bible is coming back.

The Anti-Globalization Spoilers Are Going GlobalLewis, F. (IHT) Jul 6, 2001
The 'anti-globalization' circuit is becoming global. Governments which used to consider important international summit meetings events to welcome eagerly for the attention and prestige they brought now worry about how to avoid the tumult. Meetings in Seattle, Washington, Davos, Prague, Nice, Gothenburg, Salzburg and (this month) Genoa attract mobs of demonstrators and groups of devastators out to disrupt international organization of the world economy.

Call for foreign exchange storesSCMP Jul 6, 2001
China should set up foreign exchange funds to give its citizens a legal way to buy foreign stocks, allow them more investment alternatives and reduce the outflow of foreign capital, according to the chief economist of BNP Paribas Peregrine.

MAS blocked HSBC stake bidSCMP Jul 6, 2001
A bid by HSBC to build a strategic stake in Singapore banking group Keppel Capital Holdings (KCH), was blocked by the city state's banking regulator, the Monetary Authority of Singapore (MAS).

Africa's plan to save itselfEconomist Jul 6, 2001
Gathering for the summit of the Organisation of African Unity, the continent's leaders are promising reform, and asking the rest of the world to back a recovery plan.

European Parliament Backs ManagementDeRosa, D. (Bloomberg) Jul 6, 2001
The European parliament Wednesday voted down important legislation designed to prevent corporate management from thwarting hostile takeover bids, even though those bids might be in shareholders' interests. In simple terms, parliament sided with management, and in so doing, stuck it to shareholders.

Washington Should Heed Bond MarketPesek Jr., W. (Bloomberg) Jul 6, 2001
If his first six months in office are any guide, George W. Bush's presidency may be no less poll-driven than that of his famously Gallup-beholden predecessor, Bill Clinton. Bush might be wise to heed the free advice being offered by the polling place known as the bond market.

The Euro Remains as Unfashionable as EverPesek Jr., W. (Bloomberg) Jul 6, 2001
Money, the old saying goes, changes everything, including fashion trends. Now, Europe's most prestigious designers are taking this concept to another level: designing new purses to accommodate the continent's single currency.

Open Societies, Freedom, Development and TradeMoore, M. (WTO) Jul 6, 2001
Director-General Mike Moore, in a speech on 6 July 2001 opening the first WTO Symposium on Issues Confronting the World Trading System, said "civilized discourse" with NGOs will help the WTO do a better job. He said such gatherings with NGOs and civil society should become a regular feature of WTO activities.

Chips down at high-tech firmsSCMP Jul 7, 2001
Leading high-technology firms are slashing semiconductor production and halting some operations due to a worse than expected slump in demand in the information technology (IT) sector.

Dollar dilemmaUSAT Jul 7, 2001
Treasury Secretary Paul O'Neill, in Rome during the weekend for a summit of leading economic nations, wasn't the only American in Europe who has noted how far the dollar stretches these days. Tourists are noticing, and back home, so are consumers buying foreign goods.

A Strong Dollar Clouds Prospects for Quick ReboundNYT Jul 8, 2001
More than six months after the Federal Reserve began battling to reverse the economic slowdown in the United States, an unexpected rise in the value of the dollar is complicating the prospects for a rebound.

On How Brazil Failed to Con the Currency MarketsDeRosa, D. (Bloomberg) Jul 8, 2001
Brazilian central bank chief Arminio Fraga has given a new twist to foreign exchange intervention. On Thursday, he announced he would sell $6 billion to buy Brazilian reals in evenly spaced installments over the rest of the year.

Washington Should Heed Bond MarketSmith, P. (Bloomberg) Jul 8, 2001
'We must build on what already exists rather than demolish the present structure and try to restart from the ruins.' That's Goh Keng Swee, Singapore's great administrative architect and head of just about everything at one time or another, speaking a quarter of a century ago. Goh is gone, but his thinking is a good guide to the current frenzy of offers and counter-offers going back and forth among Singapore's banks.

U.S. Treasury Chief UpbeatIHT Jul 9, 2001
Treasury Secretary Paul O'Neill said over the weekend that the United States was poised for a significant economic upturn later this year that should help revive the world economy, provided that Europe and Japan do their share to stave off recession.

G-7 Seeks Impetus as Fears GrowIHT Jul 9, 2001
Finance ministers from the big industrial nations who met here over the weekend showed dark concern over the prospect that their economies could continue to lose steam. The bright side was that they agreed steps could be taken to restore growth.

Koizumi warns of painSCMP Jul 9, 2001
Japanese Prime Minister Junichiro Koizumi has vowed to push ahead with tough reforms to revive the world's second-biggest economy, telling his people that pain was inevitable - with or without change.

Economic Slowdown Forces Europe to Scale Back AmbitionsIHT Jul 10, 2001
As Europe's big economic ambitions for 2001 have declined, so for the time being have its promises to become more autonomous in defense, more open and modern in its business culture, and more effective in foreign policy.

Bad year for growth fundsWest Australian Jul 10, 2001
Weak international stockmarkets have left big growth fund managers with the prospect of reporting their worst annual result since the 1987 share crash.

George warning on dollarTimes Jul 10, 2001
The Governor of the Bank of England has given warning that the strong dollar is damaging the global economy by hurting American exporters and fuelling inflation in the eurozone.

Singapore Dollar May Fall, Regardless of PolicyBloomberg Jul 10, 2001
Singapore will probably say it's sticking to its plan to strengthen the currency when it issues its annual policy report this week. What the Monetary Authority says and what it does, though, may be at odds.

Citi's Funatsuki Says U.S. Won't Alter Strong Dollar: CommentBloomberg Jul 10, 2001
Shingo Funatsuki, head of global foreign exchange at Citibank N.A., comments on Bank of England Governor Edward George, who said yesterday that the strong dollar has a ``perverse'' influence on the euro-zone, and a column in the New York Times on Sunday, which said the dollar's gains may derail a U.S. economic recovery.

Lamy Sees Potential of Mercosur on Multilateral StageEC DGT Jul 10, 2001
Consolidating Mercosur will give Brazil and its partners in the regional grouping more political weight in international negotiations, EU Trade Commissioner Pascal Lamy said Tuesday. Speaking to the Federacao das Industrias do Estado de Sao Paulo, Lamy said: 'Mercosur has every interest in boosting the multilateral trading system, through its active participation in the New [WTO] Round, so as to provide a better framework for its negotiations with the EU on the one hand, and the US on the other.' Lamy was speaking on the third day of a three-day visit to Brazil intended to strengthen ties with Mercosur and coordinate with Brazil on efforts to launch a new trade round in Qatar this November.

Gold Stocks Expected to Drift LowerSmallcapcenter.com Jul 10, 2001
During the dog days of summer, the price of gold customarily drifts lower and then strengthens when demand returns in the fall. Market watchers are forecasting a similar pattern this year but are divided on how to prosper from the seasonal fluctuation.

Australia sets living standardsAsia Times Jul 10, 2001
In its annual survey of standards of living around the world, the United Nations has found Norway to be the leader. In the Asia-Pacific region Australia emerged as No 1, and No 2 overall, while Japan, formerly world leader, has sunk to ninth overall.

Asia's lion loses its roarEconomist Jul 10, 2001
Singapore, once Asia's star economic performer, is facing the prospect of a full-blown recession. A painful economic slowdown in many East Asian countries is evoking comparisons with the contagious regional crisis that began in Thailand four years ago. This time, however, the contagion is of a very different strain.

Running out of steamEconomist Jul 10, 2001
One of Germany's leading research institutes has said it only expects growth of 1% this year and has called for a significant cut in European interest rates. The new forecast follows a gloomy assessment from the International Monetary Fund. What has gone wrong for Europe's growth engine?

EU and Brazil solve dispute over soluble coffeeEC DGT Jul 11, 2001
Following their meeting on 11 July in Brazil, EU Trade Commissioner Pascal Lamy and Brazilian Foreign Minister Celso Lafer announced they had reached an agreement to solve their dispute over soluble coffee, thereby heading off a possible WTO panel. In an announcement at a joint press conference in Brasilia, they said that the EU will provide a greater access to its market to soluble coffee from Brazil and other suppliers, by reducing its current 9% duty to 0% up to a certain quantity. Pascal Lamy said: 'Disputes are there to be solved. The fact that Celso Lafer and I have managed to reach an agreement on soluble coffee today reflects the positive climate that exists between the EU and Brazil. We look forward to working together to launch a new round in Qatar and to making the EU – Mercosur negotiations a success.'

Global Tech Slowdown Is Clobbering Southeast AsiaDeRosa, D. (Bloomberg) Jul 11, 2001
Dreadful economic statistics are pouring out of Asia from countries dependent on technology industries. The latest shock came with yesterday's Singapore gross domestic product report. According to the Ministry of Trade and Industry, Singapore's annualized seasonally adjusted real GDP fell 10.1 percent in the second quarter compared with the first quarter. And that follows an annualized shrinkage of 11 percent in the first quarter compared with the fourth quarter.

Argentina Markets Fall on WarningIHT Jul 12, 2001
Argentine financial markets were hammered again on Wednesday after Economy Minister Domingo Cavallo warned that the country had to slash spending or risk defaulting on its $130 billion of debt.

Beijing opens market gates to foreignersSCMP Jul 12, 2001
In a move likely to help open up the country's fledgling domestic markets, China is allowing foreign-funded companies to sell shares to mainland investors.

China eases price controlsSCMP Jul 12, 2001
Beijing has officially relinquished price control over 128 categories of goods and services in preparation for entry to the World Trade Organisation.

EU Joins WTO Partners in Request for Panel on US Byrd AmendmentEC DGT Jul 12, 2001
The European Union on 12 July announced its decision to request the establishment of a WTO panel against the US over the so-called 'Byrd amendment', US legislation providing for the proceeds from anti-dumping cases to be paid to the US companies responsible for bringing the cases in the first place. The request for a panel was jointly submitted with eight other WTO partners: Australia, Brazil, Chile, India, Indonesia, Japan, Korea, and Thailand. This joint action is a clear indication of the important systemic concerns that the legislation raises among WTO members. EU Trade Commissioner Pascal Lamy said: 'The Byrd amendment is not an US-EU problem but a US-Rest of the World problem. Our unprecedented joint action will send a very clear signal to the US of the need to repeal legislation that so clearly flies in the face of the letter and the spirit of WTO law.'

The Potential Disaster That Is ArgentinaPesek Jr., W. (Bloomberg) Jul 12, 2001
It's been four years since Thailand devalued its currency and set in motion the worst financial crisis in modern history. Few thought at the time that events in Bangkok would mushroom as they did. Thailand, after all, hardly seemed one of your major economies. Many on Wall Street had never even heard of its currency, the baht.

Bush wins some grudging praise on exportsAT Jul 12, 2001
Usually the target of environmentalists' criticism, US President George W Bush has won praise for promoting strong common environmental standards for export credit agencies. "The administration should be applauded," says environmental group Friends of the Earth.

Korea takes aim at Asia's big threeAT Jul 12, 2001
As part of efforts to develop Seoul into one Asia's four major financial hubs, the others being Hong Kong, Singapore and Tokyo, the South Korean government has announced it will soon allow foreign exchange brokers from abroad to work in the country. It also laid out a three-stage strategy as it plays catch-up to the big three.

A situation perfect for global contagionAT Jul 12, 2001
With interest rates on Argentine sovereign bonds this week hitting highs not seen since Russia's 1998 debt default, and other Latin American countries following suit, there is a near-perfect situation for financial crisis contagion to spread as emerging market currencies and stock markets are being pounded. The risks, therefore, of a crisis similar to that of 1997 are great, and any government stalling on economic reforms should watch out.

The greenback's charmEconomist Jul 12, 2001
Investors remain smitten by the dollar. How much longer will their passion last?

Don't cry for me…Economist Jul 13, 2001
The Argentine government is putting a brave face on its latest economic difficulties. But the penal rates it has been forced to pay on its public debt this week reflect investors' fears that a debt default, or a devaluation, is imminent. Market nervousness is spreading.

Our Advice to the ArgentinesWanniski, J. (Polyconomics) Jul 13, 2001
Now that the Argentine financial crisis has reached the front page of The New York Times business section, perhaps a satisfactory solution will be found. Of course, you must know by now that you have been importing the monetary deflation caused by the errant policies of the U.S. Federal Reserve over the past 4+ years. We have been warning of Argentina's unique vulnerability to U.S. deflation for several years. Some of my supply-side friends had told me I was too picky in arguing that your currency board would only serve a useful purpose as long as the dollar was wisely managed by Greenspan & Co. Now you have the seemingly impossible task of making interest payments on the $130 billion of foreign debt to Argentine and U.S. banks, and to your creditors in Europe.

TheStreet.com Jul 13, 2001
Consider it Fannie Mae and Freddie Mac's biggest nightmare. Last week, a large U.S.-focused mortgage company said it was booking nearly half a billion dollars in losses because it made a series of bum bets with derivatives, the complex financial instruments that companies use to hedge risks.

Instability putting key fund loan of US$400m at riskSCMP Jul 13, 2001
The Indonesian government cannot be certain of receiving a delayed US$400 million International Monetary Fund loan next month because of potential instability in the country, according to the fund's first deputy managing director, Stanley Fischer.

The Din of the Dollar Bears Is Almost DeafeningBaum, C. (Bloomberg) Jul 13, 2001
Everyone is negative on the U.S. dollar. From many-times-burned currency traders to the envious European press to international lending agency muckety-mucks, everyone insists that the dollar should, must, will fall because of the huge U.S. imbalances.

Bush's Steel Plan `Almost Heaven' - in West VirginiaPine, A. (Bloomberg) Jul 13, 2001
Last November, Republican vice presidential candidate Dick Cheney promised West Virginians help for the steel industry if George W. Bush won the election. It worked. Bush narrowly won the historically Democratic state.

Regulating GMOs: Is the system broken?Check Biotech Jul 13, 2001
Consumers on both sides of the Atlantic are wary of genetically modified (GM) foods, so much so that the promise of food biotechnology is threatened, said consumer advocates and UK scientists at a meeting on current issues in food biotechnology this week. At the same meeting, US Industry representatives and US regulators said current regulations in the US are adequate and that consumers are comfortable with the appearance of GM food in their grocery stores.

Argentina's Austerity Unnerves NeighborsIHT Jul 13, 2001
Argentina's markets teetered Thursday on the verge of collapse after its latest effort to put its economy in order failed to win many supporters inside the country or out.

Sanitary, Phytosanitary Measures Committee Discusses Foot and Mouth Disease, BSE and EquivalenceWTO Jul 13, 2001
With its foot and mouth disease crisis now easing, the EU pressed fellow WTO members to tailor their trade measures more closely to science and international standards, in the 10-11 July 2001 meeting of the SPS Committee. Also discussed were other specific issues such as "mad cow disease" (BSE), and "equivalence" of sanitary and phytosanitary measures, part of the General Council's discussion on implementing the current WTO agreements.

Tech bubble fallout to lingerSCMP Jul 14, 2001
The United States economy will fail to make a convincing recovery for at least another two years as it works off the excesses of a technology-led bubble, according to one of the country's most respected economists.

Faking It: The Internet Revolution Has Nothing to Do With the NasdaqNYT Jul 15, 2001
When Internet stocks began their free fall in March 2000, the Internet was finally put in its proper place. It was nothing more than a fast delivery service for information -- that was what serious people who had either lost a lot of money in the late stages of the Internet boom or, more likely, failed to make money began to say now. The profit-making potential of the Internet had been overrated, and so the social effects of the Internet were presumed to be overrated. But they weren't. Speeding up information was not the only thing the Internet had done. The Internet had made it possible for people to thwart all sorts of rules and conventions. It wasn't just the commercial order that was in flux. Many forms of authority were secured by locks waiting to be picked. The technology and money-making potential of the Internet were far less interesting than the effects people were allowing it to have on their lives and what these, in turn, said about those lives.

Italy May Need to Go on a Maastricht Budget DietDeRosa, D. (Bloomberg) Jul 15, 2001
Italy is slipping up on its budget deficit, and other members of the European Union are beginning to take public notice. Italian Economic Minister Guilio Tremonti on Wednesday forecast his country's budget deficit this year could reach 2.6 percent of GDP. Almost everyone was under the impression that Italy's deficit would be as little as 0.8 percent.

WTO talks at final hurdlesSCMP Jul 16, 2001
Chinese and World Trade Organisation negotiators are poised to begin fresh talks in the hope of overcoming the remaining hurdles to Beijing's admission.

Do Economic Captains Hear the Storm Warnings?Ignatius, D. (IHT) Jul 16, 2001
The global economy these days bears an eerie resemblance to that scene in "The Perfect Storm" where the meteorologists are looking at the swirling images at disparate points on the map. Yikes, they tell themselves, if all this bad weather comes together, it's going to be one hell of a blow.

Clumsy SanctionsIHT Jul 16, 2001
This week the White House and Congress will consider whether the United States should punish foreign companies that do business with Cuba, Iran and Libya. The Helms-Burton Act and the Iran and Libya Sanctions Act, both passed in 1996, try to haul foreign companies into U.S. courts and bar the companies' executives from entering the United States. These laws only irritate U.S. allies. President George W. Bush and the House Financial Services Committee should act to neutralize the laws and seek other ways to promote democratic change in partnership with other nations.

Comment: Perhaps not the stock recommendations, but the general theme of the article is certainly worth looking at.
The two most powerful economic forces in the world today are technology and demography. The first is obvious, the second often ignored - or misunderstood.

WTO Pressed to Rule on U.S. Trade LawIHT Jul 16, 2001
The European Union and eight national governments have asked the World Trade Organization to rule on a U.S. law allowing fines from anti-dumping cases to be paid to the American companies that instigated the complaints.

Why the euro area has failed to lead the worldBarrie, R. (Independent) Jul 16, 2001
At credit Suisse First Boston we expect the UK economy to grow faster than that of the euro area this year, and so, it would seem, do an increasing number of forecasters. For the record, our forecast is for the UK to grow by just over 2 per cent and the euro area by a little less than 2 per cent. And within the euro area it now looks unlikely that the German economy will grow by much more than 1 per cent. We expect the UK's growth advantage to be sustained next year, too.

Time for TradeWSJ Jul 16, 2001
Bush needs a policy victory. Fast-track negotiating power could be it.

Arrivederci, Summits: Should the G-8 Just Stay Home?Pine, A. (Bloomberg) Jul 16, 2001
By anyone's reckoning, the heads of government attending this year's Group of Eight economic and political summit in Genoa, Italy, this coming weekend will have no dearth of serious problems to tackle.

Baking in BonnEconomist Jul 16, 2001
Another effort to revive the Kyoto Protocol on climate change has begun in Bonn. The threats posed by global warming look even more worrying, but the chances of progress remain slim.

Indonesian monopoly turns the screwsAT Jul 16, 2001
Five foreign-funded telecom operators who won revenue-sharing deals with the state monopoly PT Telkom in 1996 thought they were on a gravy train that would run for 15 years. But the rules have been constantly changed, culminating in one of the firms, AriaWest, having its contract terminated. The issue throws doubt on privatization plans for the telecom industry, and raises fears of further fallout with the government.

Argentine crisis threatens to cross bordersAT Jul 16, 2001
The seeds of another international financial crisis may have taken root in the Mercosur countries, where economic turbulence can soon spread in the footsteps of globalization and the financial upheaval in Argentina.

The U.S. Treasury and the Myth of ContagionPesek Jr., W. (Bloomberg) Jul 16, 2001
It must be nice to work for the U.S. Treasury, what with its rose-colored, all-is-well view of the global economy. Trouble in Argentina? No problem. Turmoil in Turkey? No worries. New cracks in Asia? Big deal.

ZDNet: IT services spending to boom in AsiaNua Jul 17, 2001
Spending on IT services in Asia-Pacific (excluding Japan) is predicted to rise from USD15 billion last year to USD18 billion by the end of this year, and USD42 billion by 2005.

Bush Asks Big Lenders to Increase Aid for PoorIHT Jul 18, 2001
President George W. Bush proposed Tuesday that the big, multilateral lending institutions do far more for the health and education of people in the world's poorest countries, a proposal that one analyst described as a radical policy change for the administration.

China Defies Gravity of Global SlowdownIHT Jul 18, 2001
China's economy grew an enviable 7.9 percent in the second quarter, making it an island of economic strength in a region again facing recession after recovering only briefly from the economic crisis of four years ago.

Key Foe of IMF Plan Quits Turkey CabinetIHT Jul 18, 2001
Turkey's transport and communications minister, who is seen as a impediment to the economic recovery program backed by the International Monetary Fund, resigned Tuesday, a move that could ease market turmoil that threatens the program's future.

Budget Pact Calms Markets in ArgentinaIHT Jul 18, 2001
Argentina presented a united political front in the face of financial turmoil on Tuesday as a pact with opposition governors helped settle its shaky capital markets. Governors from the opposition Peronist Party agreed late Monday to sign on to President Fernando de la Rua's "zero deficit" plan, which calls for the federal and provincial governments to spend no more than they collect in revenues.

Gloom spreads with trade forecastSCMP Jul 18, 2001
Singapore's worsening economic position was highlighted anew as the government said total trade would contract between 2 per cent and 4 per cent this year, sharply lower than its initial forecast.

EC Adopts Strategy to Promote Core Labour Standards and Social Governance GloballyEC DGT Jul 18, 2001
The European Commission on 18 July adopted a communication proposing an EU strategy to promote core labour standards and social governance globally. The communication proposes action at European and at international levels, to support the effective application of core labour standards at global level. The development dimension is central to the strategy, which aims to help developing countries apply core labour standards for social development. Commenting on the launch of the proposals, Commissioners Pascal Lamy (Trade) and Anna Diamantopoulou (Employment) said, "Citizens feel there is a need for an equitable global economic system which promotes social development and fundamental rights and that our current governance model does not adequately address this. Global market governance has developed more quickly than global social governance. We should rebalance the system to help promote social development and ensure that globalisation benefits all people and all countries."

Commerce Reduces PovertyMarsden, K. (WSJE) Jul 18, 2001
The real victims of the Genoa protesters will not be the summiteers, but the world's poor.

UnsanctionedEconomist Jul 18, 2001
When the administration of President George Bush took office, it promised to kick America's addiction to economic sanctions. But with Congress about to extend sanctions against Iran and Libya, America is still hooked.

Greenspan's balancing actEconomist Jul 18, 2001
Alan Greenspan displayed cautious optimism about America's economic future in testimony to Congress on July 18th. While the chairman of the Federal Reserve did not rule out further interest-rate cuts he did make it clear that it was not possible to eliminate the business cycle.

When the chips are downEconomist Jul 18, 2001
Technology firms, especially chip makers, have produced another set of gloomy results and predictions. The industry's recovery will be further away than many had imagined.

BOJ's Okina Proposes Buying Forex Assets to Lift Money SupplyBloomberg Jul 19, 2001
The Bank of Japan should consider buying foreign-currency securities and other assets from lenders to boost money supply, shifting its policy away from buying Japanese government bonds, the head of the bank's research arm said.

Spotting the CracksEconomist Jul 19, 2001
The European Central Bank once again left interest rates unchanged at its meeting on July 19th. But with less than six months to go before euro notes and coins are issued in the 12 countries of the euro area, strains in Europe's economic and monetary union are beginning to appear.

'Shadow' Ministers Prod G-8 to Give Poor a VoiceIHT Jul 19, 2001
A group of statesmen including Henry Kissinger and Paul Volcker, the former Federal Reserve Board chairman, is urging the leaders of the world's top industrial countries to give less developed countries a seat at the table at their annual G-8 summit talks.

One, two, many (Asian) ArgentinasAT Jul 19, 2001
What the dollar peg did to Argentina's exports, collapsing US demand has done to Asia's - cut them drastically at a time when debt is growing faster than the economy. It is a minor miracle that with such debt traps well in the making throughout the region, an Argentine-style crisis of confidence has yet to hit full force. Will it hit? There can be little doubt about it. Can anything be done about it? No, although one noted economist believes he knows who has the solution - Donald Rumsfeld, the US defense secretary.

Helping Poor NationsWanniski, J. (Polyconomics) Jul 19, 2001
It is about time a U.S. Treasury Secretary lectured the international financial institutions, which have been throwing money around for half a century while global poverty has either shown no advance or has gotten deeper.

Gene galaxies in the maize genomeCheck Biotech Jul 19, 2001
Complete sequencing of higher eukaryotic genomes yielded the surprise that despite hundreds of millions of years of evolutionary separation and strikingly different sizes and body plans, diverse organisms contain nearly the same number of genes! Gene prediction is 30,000 for human, slightly lower for other animals, including 13,600 for the fruit fly Drosophila melanogaster, 18,400 for the nematode worm Caenorhabditis elegans, and 26,000 for the flowering plant Arabidopsis thaliana.

Global Markets' Expectations Low for G-8 ActionIHT Jul 20, 2001
As the heads of the world's rich nations gather here for their annual summit meeting, economists and bankers fear that a global leadership vacuum threatens to delay any swift recovery for an international economy already tilting toward recession.

Invisible Hand Guides Bush on EconomyIHT Jul 20, 2001
When world leaders gather Friday for the Group of Eight summit meeting in Genoa, the most influential member of President George W. Bush's economic team will be missing.

The EU? Poll Finds Public Skeptical and IndifferentIHT Jul 20, 2001
A Europe-wide poll shows, and government ministers confirm, that the European Union faces strong public skepticism and indifference as it prepares to adopt a single currency in less than six months.

In Search of a Broader Consensus on Trade TalksIHT Jul 20, 2001
Togetherness. That was the unusual theme ostentatiously played out in Washington this week by the world's two top trade negotiators - Robert Zoellick, the U.S. trade representative, and Pascal Lamy, the European Union trade commissioner. .In a single day, the harmonious duo went together to see John Wolfensohn, president of the World Bank; addressed a gathering of members of Congress and European parliamentarians on Capitol Hill; held a joint news conference, and pledged in an article in The Washington Post to work together to start a new round of trade negotiations.

Do as We Do, and Not as We SayKrugman, P. (IHT) Jul 20, 2001
It wasn't true when Richard Nixon said it but it is true today: We are all Keynesians now - at least when we Americans look at our own economy. We give anti-Keynesian advice only to other countries.

U.S. Treasury's O'Neill on Economic Outlook, Greenspan: CommentBloomberg Jul 20, 2001
Comments from U.S. Treasury Secretary Paul O'Neill on his forecast for growth in the U.S. economy compared with the outlook delivered to Congress earlier this week by Federal Reserve Board Chairman Alan Greenspan. O'Neill was interviewed on CNN cable television's 'Inside Politics'.

The Stronger U.S. Dollar Is Here to StayPesek Jr., W. (Bloomberg) Jul 20, 2001
Live with it! That's the clear message the Bush Administration is sending the nation's manufacturers, farmers, trade unions and anyone else who wants the U.S. to lower the dollar's value. That takes the risk of a pact to weaken the dollar off the table for this weekend's Group of Eight summit meeting.

The challenge at GenoaEconomist Jul 20, 2001
Against a backdrop of mass protest and street violence, the G8 summit is taking place in Genoa. Meeting behind the tightest security ever seen at such an event, the leaders face huge obstacles in reconciling their differences.

World Bank accused of fraud in Internet schemeAT Jul 20, 2001
James Wolfensohn, the World Bank's president, and Richard Stern, a former vice president, have been singled out in a complaint submitted to the lending agency's fraud unit. At issue is a bank effort to build the Internet's premier portal on poverty and sustainable development.

US maintains normal relationsSCMP Jul 21, 2001
The United States House of Representatives has voted to extend normal trade relations with China for another year.

G-7 Protests Overshadow Meeting's FailuresDeRosa, D. (Bloomberg) Jul 22, 2001
The fatal wounding of a protester by police outside Friday's meeting of the leaders of the Group of Seven industrialized nations in Genoa is bound to step up the worldwide rhetoric against globalization.

G-8 Vows to Attack PovertyIHT Jul 23, 2001
Ending a three-day summit meeting that was marred by unprecedented violence and the death of one demonstrator, leaders of the Group of Eight nations promised Sunday to work together toward alleviating world poverty, especially in Africa.

Leaders Start to Rethink the Big-Summit FormatIHT Jul 23, 2001
For years now, critics of the Group of Eight summit process have argued that the annual gatherings have moved far away from their original intent, as an informal and small meeting of world leaders aimed at coming up with coordinated policies to maintain global economic growth and stability.

As Blair Waits for the Right Euro Moment, Opinion ShiftsIHT Jul 23, 2001
About three weeks ago, following Prime Minister Tony Blair's re-election victory, a major London newspaper offered evidence, a bit startlingly, that British attitudes about joining the euro had gone two ways at once.

Shifting Cycles: New Economy Becomes the Only EconomyIHT Jul 23, 2001
Until recently, the "tech cycle" and the "business cycle" were largely independent of each other. The tech sector was so small that its booms and busts did not significantly affect the direction of the overall economy. And because technology gave businesses the tools to improve efficiency and increase sales, companies tended to invest in it through good times and bad. .But in the past decade, the technology sector seems to have had an outsized effect, suggesting to some economists that a full-fledged economic rebound will not begin until the technology cycle turns up.

G-8 and Main Protest Groups Agree on Stopping ViolenceNYT Jul 23, 2001
As both sides left Genoa, the leaders of the major industrialized nations who met here and the mainstream protest leaders began reflecting today on how to carry out their goals while avoiding the fatal violence that marred this year's meeting. About all they agreed upon was: never again.

China's Future Caught in the WebSCMP July 23, 2001
Speculation over the political effects of the Internet on the mainland seems to be growing, with policymakers, politicians, reporters and analysts all offering their own two-cents' worth.

The Dot-Com FutureRockwell Jr., L.H. (Mises Daily) Jul 23, 2001
Webvan, the cockamamie scheme to provide groceries over the Internet, has gone belly-up. Maybe that was in the cards regardless, but it is a paradigmatic case. Owners of dot-com stock funds regret ever having heard of the Internet.

China's Internet CrackdownIndependent Jul 23, 2001
Communist officials have ordered the closure of 2,000 of the country's Internet cafés and "suspended" another 6,000. "Ostensibly, the anti-net drive is a response to a wave of parental complaints that their children are accessing too much pornography," London's Independent reports. "But there are suspicions that the government has found an excuse to limit people's access to material it considers politically subversive."

Without U.S., 178 Nations Advance Kyoto PactIHT Jul 24, 2001
The world's nations, minus the United States, accepted treaty rules Monday that for the first time would require industrialized countries to cut emissions of waste gases linked to global warming.

Downer calls for neighbourly comments to confront futureSCMP Jul 24, 2001
Australia wants a shake-up of the Association of Southeast Asian Nations (Asean), saying that the 10-member group would struggle to offset the challenges posed by a resurgent China unless it becomes more open.

The future of e-tailingEconomist Jul 24, 2001
While some companies are making a success of selling things on the Internet, it is still not clear who the successful e-tailers of the future will be. From the evidence so far, it seems that simple business models designed to keep costs low and profits high are the most likely to succeed. What a surprise.

A Global Roadmap for Modern BiotechnologyCheck Biotech Jul 24, 2001
This Global Roadmap for Modern Biotechnology has been formulated in recognition of biotechnology as a rapidly emerging, intrinsically complicated, and far-reaching new technology. Developing this technology into an industry confronts many of the challenges common to emerging, technology-based industries, including: research & development; creation of investment capital; technology transfer; market penetration; protection of property rights; pricing and regulation.

Ethical Considerations: Playing God or Doing God's Work?Check Biotech Jul 24, 2001
Food safety and environmental protection tend to take center stage in agricultural biotechnology policy debates. In this edition, however, we focus on religious, moral and ethical considerations coming into play as this technology is developed and applied.

General Council: Still No Movement On ImplementationBRIDGES Weekly Trade News Digest - Vol. 5, Number 28 July 24, 2001
WTO Members on 20 July met for a General Council (GC) Special Session on Implementation in an attempt to bridge some of the gaps that still remain between the different country positions on implementation issues. To advance this process, GC Chair Stuart Harbinson and WTO Director-General Mike Moore on 13 July had circulated a paper outlining so-called "do-able" implementation concerns. Many developing country Members at the 20 July meeting expressed their disappointment with the paper, saying that it did not 'live up to expectations'. Few delegates, however, commented on its details, showing a general unwillingness to move on implementation issues.

G-8 Leaders Support New Round Amid ViolenceBRIDGES Weekly Trade News Digest - Vol. 5, Number 28 July 24, 2001
Leaders from Group of Seven major industrialised countries plus Russia (G-8) met in Genoa, Italy from 20-22 July for their annual informal summit. In their final statement, the leaders asserted their determination to "make globalisation work for all our citizens and especially the world's poor". Against a backdrop of anti-globalisation protests, the G-8 maintained that, "the most effective poverty reduction strategy is to maintain a strong, dynamic, open and growing global economy [emphasis added]." Their final statement endorsed the launch of an ambitious new round of global trade talks with a balanced agenda at the WTO Ministerial Conference in Doha this November. The G-8 confirmed their pledge made at the May 2001 Third UN Conference on Least-developed Countries (LDCs) to work towards duty-and quota-free access for all products originating in LDCs supplemented by further assistance to LDCs.

Last Steps On Road To Chinese WTO AccessionBRIDGES Weekly Trade News Digest - Vol. 5, Number 28 July 24, 2001
On 20 July, delegates of China's Accession Working Party met anew with the purpose of ironing out the last two unsettled stumbling blocks on services and tariff rate quotas.

WTO Agriculture Negotiations Plow Through Export SubsidiesBRIDGES Weekly Trade News Digest - Vol. 5, Number 28 July 24, 2001
From 23-27 July, the WTO Special Session of the Committee on Agriculture will continue informal deliberations on issues related to export competition and food security in world agricultural trade. Specific topics to be addressed by the special session include: export subsidies, export credits, state trading enterprises, export restrictions, food security and food safety.

O'Neill Formula: Aid to Brazil but No Open HandIHT July 25, 2001
U.S. Treasury Secretary Paul O'Neill said he would support a new aid package to ease problems in Brazil, but he sharpened his overall critique of the global financial system, saying he did not want the United States simply to continue playing the role of economic 'fireman'.

Brazil's Search for Some Preventive MedicineDeRosa, D. (Bloomberg) Jul 25, 2001
Officials are making the rounds in Washington, arguing for more loans and assistance for their strained economy. And they have a powerful argument: Without bolstering its economy, Brazil might not be able to withstand the storm if Argentina defaults on its debt.

Japan's Bubble Is Back, This Time in BondsPesek Jr., W. (Bloomberg) Jul 25, 2001
Japan has a long history of taking good business ideas and improving on them. Electronics, automobiles, computers, you name it. Japanese policy makers have taken things a step further -- making bigger and better financial bubbles.

Strict rules will curtail capital flightSCMP Jul 25, 2001
China will tighten controls over foreign exchange dealings to curb capital flight that could undermine the stability of the yuan, the Financial News reports.

EU agrees to allow US more time to comply with WTO ruling on anti-dumping lawEC DGT Jul 25, 2001
The European Union has agreed to allow the US more time to implement a World Trade Organisation ruling against anti-dumping/anti-trust legislation dating from 1916. The extension, which comes further to a US request to the WTO's Dispute Settlement Body, would give the US until 31 December 2001 to implement the WTO ruling that condemned the act. EU Trade Commissioner Pascal Lamy said: "I note with satisfaction that the US intends to comply fully with the WTO rulings - and, in this context, we are ready to give them a little more time if that is needed to resolve this question."

They just don't get ITEconomist Jul 25, 2001
With the continued fall in spending on information technology, firms are facing an increasingly miserable time. There is unlikely to be any relief for another year; for those unfortunate enough to be in the telecoms business, the misery may last even longer.

Philippines urged to adopt dollar currencyAT Jul 25, 2001
A senior researcher suggests the Philippines should drop its peso currency in favor of the United States dollar, saying this would be one way to eliminate currency fluctuations. He does warn, however, that the government would lose revenue currently derived through the monetary authority issuing currency.

We Could Have Done Without the Genoa CircusPfaff, W. (IHT) Jul 26, 2001
A happy result of the Group of Eight meeting would be an end to Group of Eight meetings. .Happier yet would be a serious reconsideration of the ideology of deregulation and free trade expansion, which drives globalism and inspires activists to wreck G-8 meetings.

Free Trade With VietnamNYT Jul 26, 2001
Both the United States and Vietnam would benefit from the free trade agreement awaiting approval by Congress.

White House Looks a Bit ECBesque These DaysPesek Jr., W. (Bloomberg) Jul 26, 2001
Robert Rubin, the father of the strong U.S. dollar policy, yesterday made an appearance on Capitol Hill. The former Treasury secretary came to weigh in on a variety of issues, including U.S. dollar policy. For currency traders starved for clarity on exactly what that is these days, it was the verbal equivalent of comfort food.

WTO expands to 142 membersWTO Jul 26, 2001
Moldova officially became the 142nd member of the WTO on 26 July 2001--30 days after it notified the organization that it had completed domestic ratification procedures. The WTO General Council approved the country's accession package last May.

Europe's stock exchangesEconomist Jul 26, 2001
Competition among Europe's bourses is keener, thanks to bear markets, new technology and the euro. Liquidity and trading costs will decide who wins

Playing games with prosperityEconomist Jul 26, 2001
The world desperately needs to launch a new trade round at Doha in November. It is having a struggle to get there.

A global euro?Economist Jul 26, 2001
Can the euro rival the dollar as an international currency?

Russia and the WTOEconomist Jul 26, 2001
For Russia to join the WTO, there is no shortage of goodwill—nor of obstacles.

The eagle's hard landing?Economist Jul 27, 2001
America's economic recovery has yet to get under way, judging by figures released on July 27th. They showed that in the second quarter of the year GDP grew even more slowly than it did in the first three months.

More Money Double Talk From the Bank of JapanDeRosa, D. (Bloomberg) Jul 27, 2001
I would have loved to have been privileged to listen in on any recent conversations between Sakuya Fujiwara, deputy governor of the Bank of Japan, and Kunio Okina, head of the BOJ's research department. Looks to have been a good punch- out over monetary policy and foreign exchange.

Don't Write Off Internet CommerceGillmor, D. (Siliconvalley.com) Jul 28, 2001
If you take some recent news at face value, you'd have to conclude that the bricks have all but killed the clicks. Webvan Group is in bankruptcy proceedings. Amazon.com is hurting. Online spinoffs like Kmart's BlueLight.com are returning to the roost. Don't make the mistake, however, of writing off the concept of online retailing. And don't think that traditional stores can, or should, return to business as usual.

Technology Pros Discuss What Comes After the FallNYT Jul 29, 2001
The American economy may or may not be in a recession; but the information technology industry surely is, with no sign of an upturn. Lately, Silicon Valley, fabled for its invention, its can-do mentality and its dot-com fever, is looking a lot less fabled.

Argentina Never Runs Short of Financial TricksDeRosa, D. (Bloomberg) Jul 29, 2001
One thing emerging markets nations should learn from Argentina is don't make budget promises that can't be kept. That is doubly important when the International Monetary Fund is listening.

Poor economy puts pressure on banksSCMP Jul 30, 2001
The weakening banking industry is coming under increasing pressure as the economy takes a turn for the worse, making the sector more vulnerable to the danger of a domestic financial crisis.

At Home and Abroad, Calls for Weaker DollarIHT Jul 30, 2001
A strong dollar cuts into earnings by dulling a company's competitive edge overseas and through the reduction of profits earned abroad when they are translated back into dollars. This translation is also deepening the stock market losses for Americans investing outside their home markets. Analysts See Subtle Signs of a Policy Shift.

Letting the Dollar AloneNYT Jul 30, 2001
For the time being, President Bush and Paul O'Neill, the secretary of the Treasury, should sit back and allow economic trends to influence the currency's position.

Germany's Need for ImmigrantsNYT Jul 30, 2001
Germans will have to overcome their traditional discomfort with immigration if their nation is to remain an economic power over the next half-century.

Tackling tradeEconomist Jul 30, 2001
The director-general of the World Trade Organisation is giving a blunt warning that, without urgent progress, prospects for the new round world trade talks to be launched in Doha in November look bleak.

Hands Off the Currencies!Lemieux, P. (LFCT) Jul 30, 2001
A debate about dollarization has been raging in Canada over the last few months. (No, I won't make the easy joke that Canada is already dullarized enough!) "Dollarization" has become the standard term to describe the adoption of a foreign currency, whether it be the U.S. dollar (which is usually the case) or some other currency. In the Canadian context, dollarization means using the U.S. dollar instead of the Canadian dollar. In a recent opinion poll among Canadian business executives and business owners, 45% answered Yes to the question, "Should Canada adopt the U.S. dollar?", while 42% said it was a bad idea. A majority of those who wanted to keep the loonie (Canadian dollar) cited "independence/sovereignty" and "national pride/emotional appeal."

A Yen for Koizumi, But Not Japan's CurrencyPesek Jr., W. (Bloomberg) Jul 30, 2001
Koizumania reached a fever pitch yesterday as the wildly popular Junichiro Koizumi led his unpopular Liberal Democratic Party to an election victory. The prime minister's win could mean many things for Japan's economy, the most immediate being a weaker yen.

Discord Mars WTO's ProspectsIHT Jul 31, 2001
Member countries of the World Trade Organization were struggling Monday to ensure that a new round of global trade talks begins this autumn amid warnings that the poorest countries would suffer most if no talks took place.

Argentine Senate Backs Austerity BillIHT Jul 31, 2001
The government's key austerity bill was finally passed by the Senate on Monday in a move seen as crucial to allaying fears of a debt default and helping the sickly economy out of crisis. .In a predawn vote after an all-night debate, the opposition-dominated Senate approved the unpopular bill to end deficit spending and slash state salaries and some pensions by up to 13 percent.

Broadband struggle in the PhilippinesAT Jul 31, 2001
Although Philippine Communications Clearinghouse Inc has been blocked once by the government from forming a monopolistic national telecommunications backbone, moves are underfoot for another try, this time involving the Lopez group, the largest infrastructure conglomerate in the country.

Ghosts of SeattleAT Jul 31, 2001
The World Trade Organization's 141 members are still hopelessly divided over November's new round of global talks, so much so that they have missed a deadline for setting the agenda for the talks. This is despite predictions that new negotiations would stimulate the world economy with a contribution equivalent to twice that of the economy of China.

Indonesia: 140 million farmers and not enough riceAT Jul 31, 2001
The above is a numbing statistic, and the fact remains that Indonesia is the biggest rice importer in Asia. As the country has no clear policy on food security, it is difficult for international donors to help it achieve rice self-sufficiency.

EU Calls for Convergence at WTOEU DGT Jul 31, 2001
Mogens Peter Carl, Director General for Trade at the European Commission, said there was growing convergence on a broad, substantive negotiating agenda at the forthcoming World Trade Organisation Ministerial meeting. Speaking on 30 July at a special session of the WTO General Council meeting to take stock of preparations for a new trade round, Carl noted the close co-operation between the European Union and the US on the agenda for a Round in recent months. Carl welcomed in particular the US's clear support at the meeting for negotiations on investment and competition.

No Progress On Doha Agenda At WTO's 'Reality Check'BRIDGES Weekly Trade News Digest - Vol. 5, Number 29Jul 31, 2001
At a much-awaited informal meeting of the WTO General Council (GC) on 30-31 July, Members remained far apart on agreement over elements of an agenda for the WTO's Fourth Ministerial Conference from 9-13 November in Doha, Qatar. Intended as a 'reality check' 100 days before the Ministerial, Members failed to use the opportunity to advance on what could appear on a Ministerial Declaration, and instead forwarded statements that for the most part re-iterated previously-known positions.

LDCs Say 'Not Ready' For New RoundBRIDGES Weekly Trade News Digest - Vol. 5, Number 29Jul 31, 2001
Trade ministers from the 49 Least-Developed Countries (LDCs) met in Zanzibar, Tanzania on 22-24 July and formed a common front towards the upcoming WTO Ministerial Conference in Doha. The meeting was an initiative of the Tanzanian government to build consensus among LDCs outside the UN framework. In a statement widely taken to be a rejection of the launch of a new round of multilateral trade negotiations in November, the LDCs expressed their determination to "reverse the marginalisation of our countries in international trade and enhance LDCs' effective participation in the multilateral trading system". The countries agreed on a draft Development Agenda containing negotiating objectives and proposals of LDCs for use at Doha.

TRIPs Continues Discussions On MedicinesBRIDGES Weekly Trade News Digest - Vol. 5, Number 29Jul 31, 2001
WTO Members at an informal meeting of the WTO Council for Trade-Related Aspects of Intellectual Property Rights (TRIPs) on 25 July discussed issues related to TRIPs and access to medicines in preparation for the next formal TRIPs Council meeting in September and the WTO Ministerial Conference in Doha, Qatar, in November. After raising a broad range of issues during a special day of discussions at the last Council meeting in June, WTO Members agreed to focus on issues related to the objectives and principles of the TRIPs Agreement, compulsory licences and parallel imports.

Argentina seeks $2.3bn in swap and tax bondEuromoney Jul 31, 2001
The Argentine ministry of finance is in talks with local market makers and banks to swap $1.3 billion in short-term treasury bills. The swap looks likely to happen this week. The government is also planning a 'patriotic bond', whereby provinces and multinationals pay $1 billion in tax a year early.